Question

the mean tenure for a chief executive officer (ceo) was 9 years. a survey of 124 companies reported in the wall street journal found a sample mean tenure of 8.7 years for ceos with a standard deviation of s = 5.3 years (the wall street journal, january 2, 2007). you dont know the population standard deviation but can assume it is normally distributed. you want to formulate and test the hypothesis made by the group, at a significance level of α = 0.10. your hypotheses are: $h_0:mu = 9$, $h_a:mu
eq9$. claim: $h_0$. the test statistic for this sample is -0.63. the p - value for this sample is 0.5297. the p - value is greater than α. this test statistic leads to a decision to fail to reject the null hypothesis. as such, the final conclusion is that... what is the correct interpretation of this decision? using a 0.10 level of significance, there select an answer sufficient evidence to select an answer the claim.

Explanation:

Step1: Recall hypothesis - testing decision rule

In hypothesis - testing, if the p - value is greater than the significance level $\alpha$, we fail to reject the null hypothesis. Here, $\alpha = 0.10$ and $p=0.5297$. Since $p > \alpha$, we do not have enough evidence to reject the null hypothesis.

Step2: Interpret the decision

When we fail to reject the null hypothesis $H_0:\mu = 9$, it means that using a 0.10 level of significance, there is not sufficient evidence to reject the claim (because the null hypothesis is the claim in this case).

Answer:

Using a 0.10 level of significance, there is not sufficient evidence to reject the claim.